Costco, Target and BJ’s exceed expectations in June

By Katherine Boccaccio

New York City -- Discounters and warehouse clubs turned in robust performances in June, led by Costco Wholesale Club, whose same-store sales in the United States rose 12%, while internationally same-store sales jumped 18%. Excluding the impact of inflation in gasoline prices and stronger foreign currencies, Costco said same-store sales in June rose 8%. Its results beat expectations.

BJ’s Wholesale Club also beat Wall Street estimates with a 7.3% same-store sales gain in June, which included a fuel sales contribution of 3.8%. Total sales rose 10.3% to $1.18 billion.

Target topped estimates, posting a same-store sales gain of 4.5%, handily beating the 3.2% estimated by Wall Street. Target said the results were at the “high end” of its own internally expected range, helped by an increase in average ticket size. The chain said the grocery category was its strongest performer. Health-and-beauty products and clothing basics such as tights and underwear were also strong. Movies, books and home decor were weaker.

Total sales for the five weeks ended July 3 increased by 5.7% to $6.26 billion.